Chancellor Philip Hammond says Tories are 'absolutely' committed to avoiding no deal Brexit
Philip Hammond today stressed that he and colleagues were “absolutely committed” to avoiding a no-deal Brexit amid warnings that a third of the Cabinet could resign to stop the UK crashing out of the EU.
The Chancellor insisted “progress” was being made towards getting Brussels to budge and agree “appropriate guarantees” that the Northern Ireland border “backstop” would only be a temporary measure, as demanded by Brexiteers.
However, there were no clear signs of sufficient compromises yet from Brussels to satisfy a number of Brexiteers and newly-Independent MP Sarah Wollaston, who backs a second referendum, warned of a mass Cabinet walkout if the country heads towards chaotically plummeting out of the EU.
Former Cabinet minister Justine Greening also made clear she would quit the party if the Government backed a no deal.
Both the Tories and Labour were today on alert for fresh resignations after three Conservative MPs quit the party yesterday to join eight former Labour MPs in a new Independent grouping.
The Chancellor indicated that the crucial “meaningful vote” on Theresa May’s Brexit blueprint could even take place next week if there is a dramatic breakthrough in the negotiations.
Mr Hammond said billions had already been spent on Brexit preparations, including the risk of a no-deal which he emphasised would be a “very bad outcome for the UK”.
Speaking on BBC Radio 4’s Today programme, he added: “What I’m telling you is that I and my colleagues are absolutely committed to avoiding that outcome and to making sure that we get the deal.”
During a media round this morning, Mr Hammond repeatedly declined to say whether or not he would resign as Chancellor rather than stay in the post if the UK was plunging into a no-deal departure from the EU.
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He is not one to make threats of resignation and is seen as less likely to quit than some other Cabinet ministers including Work and Pensions Secretary Amber Rudd, Business Secretary Greg Clark and Justice Secretary David Gauke if the country is heading towards a no-deal.
However, he added: “So long as I believe that I’m able to influence that outcome and to help to get us to a good outcome here which will protect British jobs and British prosperity in the future that is what I will go on doing.”
He also made clear that the Government’s strategy was to get sufficient concessions from the EU on the “backstop”, more clarity in the political declaration on issues such as workers’ rights and that technology could in future be used to solve the Northern Ireland border row, in order to win over enough Brexiteers, the DUP and some Labour MPs to get a parliamentary majority, while accepting that a hardcore of European Research Group members may still not back Mrs May’s deal.
There were signs that some ERG members may support the Prime Minister’s proposals if there is a codicil or addendum to the Withdrawal Agreement, despite earlier demands, which have been rejected by Brussels, that it must be re-opened for changes to be made to the backstop.
However, Mrs Wollaston stressed that around nine Cabinet ministers could walk out if Mrs May steers the country towards a no-deal Brexit.
“A third of the Cabinet, I’m pretty clear, would walk if they were looking at a no-deal Brexit,” she claimed.
The Totnes MP joined the new Independent grouping yesterday alongside former minister Anna Soubry and South Cambridgeshire MP Heidi Allen.
Ex-education secretary Ms Greening indicated she would leave the party if the Government backed a no-deal Brexit.
“I don’t think I would be able to stay part of a party that was simply a Brexit party that had crashed us out of the European Union,” she said.
Asked if she would follow her three former colleagues to the Independent Group she said: “It is something that I have considered, but I have reached a different conclusion for the moment.”
The Prime Minister is due to fly to Egypt at the weekend for an EU-Arab summit at which she hopes to make further progress in persuading European leaders to make concessions.
Brexit Secretary Stephen Barclay and Attorney General Geoffrey Cox were also holding more talks in Brussels with senior European Commission officials.
European Commission president Jean-Claude Juncker, who held talks with Mrs May last night, stressed a no deal was still possible and that it would have “terrible consequences” for the UK and the Continent.
Mr Hammond acknowledged it was “extremely uncomfortable” for businesses to have got so close to the scheduled Brexit date of March 29 without clarity on the outcome.
“The fundamentals of the economy are in good shape, but of course Brexit is a large black cloud hanging over it and we have to get this resolved,” he told BBC Breakfast.